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Home / Business / Breaking News: Michael Hild on Live Well Financial arrested, charged with & # 39; brave fraud & # 39;

Breaking News: Michael Hild on Live Well Financial arrested, charged with & # 39; brave fraud & # 39;



LiveWell CEO Michael Hild (BizSense file photo)

Michael Hild, founder and CEO of collapsed Chesterfield-based mortgage company Live Well Financial was arrested and charged by the federal government on Thursday have run a multi-million dollar bond scheme.

According to the U.S. Attorney's Office for the South District of New York, Hild was arrested in Richmond this morning and will be arraigned this afternoon. Live Well CFO Eric Rohr and CEO Darren Stumberger were also criminally charged, but were not arrested. They have pleaded guilty and are cooperating with the authorities.

The three executives, as well as Live Well, were also indicted in a civil case brought by the Securities and Exchange Commission. The SEC said Rohr and Stumberger consented to partial judgments against them.

The criminal and civil charges claim, according to the initial announcements, that Live Well, under the leadership of Hild, fraudulently inflated the value of its portfolio of complex reverse mortgage bonds. It labels the alleged actions a "market-sharing market order."

"Through this alleged scheme – which Hild called a" self-generating cash machine "- Live Well was able to borrow tens of millions of dollars more from its lenders through securities transactions than it could have borrowed had the bonds been priced accurately and able to fund costly compensation packages for Hild and others, "the SEC said in a news release.

The SEC claims the alleged scheme collapsed earlier this year. Live Well shut down suddenly and with little explanation in May, lay off the entire workforce and allow lenders to hold the bag of tens of millions in debt. These lenders then forced the company into bankruptcy, which continues to play in Delaware.

The government said it has received post-processing to preserve Hild's assets, "including various properties and business interests in the Richmond area – owned directly or indirectly by HILD and, as alleged, purchased with proceeds from the scheme."

SEC requests a jury trial and financial penalties, and alleges violations of federal securities law fraud laws. [19659006] This is news, follow BizSense tomorrow for more information on this story.


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